• Kyodo

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The state-backed Japan Post Bank Co. is considering setting up an investment fund with local financial institutions to support small- and medium-sized companies as it aims to diversify its fund management options, sources close to the matter said Tuesday.

It would enable Japan Post Bank, a unit of Japan Post Holdings Co., local banks and others to invest in or extend loans to small and mid-size companies via the fund. It would also offer them advice on management.

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